Governor Hochul Unveils Highlights of the Fiscal Year 2027 Executive Budget: A Stronger, Safer, More Affordable New York

Affordability for Working Families

Building on the success of her Affordability Agenda that put $5 billion back into the pockets of New Yorkers, Governor Hochul has committed to driving down one of the biggest pressures on family budgets: child care. Since taking office, Governor Hochul has invested over $8.6 billion in child care, expanding access and eligibility, and supporting the child care workforce. The Governor’s plan includes:

• $4.5 billion total statewide in child care and Pre-K services, including $1.7 billion in new investments statewide
• Over $3.2 billion in childcare vouchers statewide to address waitlists
• $500 million over two years for NYC’s 2-Care program
• $60 million to pilot child care programs in Broome, Dutchess, and Monroe Counties
• Enhance and reform the Child and Dependent Care Credit, providing 230,000 filers with an average increase in benefit of $576

The Governor’s Budget also aims to crack down on fraud to lower vehicle insurance rates for New Yorkers, reduce rising home insurance costs by increasing accountability and transparency for insurers and expanding automatic discounts for homeowners and housing providers who invest in damage mitigation measures for their homes or multifamily properties, and tackle utility costs by demanding strict fiscal discipline from utilities, empowering the State to fight more effectively for lower bills. The budget also aims to support hardworking New Yorkers by eliminating New York State income tax on tipped wages, up to $25,000 per year. Under the Governor’s proposal, the benefit will begin when New Yorkers file Tax Year 2026 returns.

A Quality Education for Every New Yorker

Every New Yorker deserves a quality education. That’s why the Governor’s budget proposes to invest in the next generation with $39.3 billion in school aid–the highest level in state history. The Governor’s proposal ensures each school district will receive an increase in Foundation Aid–helping to hold the line for local property taxpayers and also includes:

• $1.6 billion for Universal Pre-K Aid in SY 2027, a $561M (53%) increase over SY 2026 levels
• $395 million for year two of the Universal Free School Meals program
• An expansion of back-to-basics learning to math: transforming math learning through quality instruction and professional learning
• $34 million for library construction grants
• An additional $90 million in support to maintain a tuition freeze for resident undergraduate students at SUNY and CUNY four-year colleges
• $12.5 million to expand our free community college program

Protecting Access to Health and Mental Health Care

In the face of drastic cuts from Washington, Governor Hochul is committed to protecting access to health and mental health care without shifting costs to families and without jeopardizing access to care for New York’s most vulnerable. The Governor’s budget will protect services, support providers and manage growth responsibly by providing:

• $38.2 billion for New York’s Medicaid program, including $1.2 billion this year in federal funding generated through an assessment on Managed Care Organizations (MCOs) that will be disbursed to health care providers and programs, including hospitals, health clinics, nursing homes, assisted living programs, and more
• $1 billion in new capital and a minimum of $330 million in operating funds for the existing Safety Net Transformation Program to support transformative projects that promote financial sustainability and quality of care in New York’s safety net hospitals.
• $750 million in new health care resources to promote access to high quality services provided by hospitals and nursing homes
• $80 million to protect access to reproductive health care and to secure reproductive health centers
• $3.2 million to improve cardiac emergency preparedness by establishing regional centers of excellence for CPR training
• $17.5 million to expand the Teen Mental Health First Aid training to be available to all tenth graders in New York State